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Telephone.(special section - deregulation and consumers)(Industry Overview)

Consumer Reports

| July 01, 2002 | COPYRIGHT 2002 Consumers Union of the United States, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

WHAT WAS DEREGULATED: Phone equipment fully deregulated in 1984; long distance partially deregulated in 1984; local service partially deregulated in 1996.

SAVINGS: ([up arrow]) Per-minute rates have plummeted, in large part because of regulated cuts.

SERVICE: ([left arrow][right arrow]) Satisfaction now declining, although it's still higher than before deregulation.

CONSUMER RIGHTS: ([left arrow][right arrow]) Some new protections added, others reduced.

SAFETY: Not applicable.

CHOICE: ([up arrow]) Explosion of choice in phone equipment. More choice in longdistance carriers, next to none in local service.

INNOVATION: ([left arrow][right arrow]) Deregulation sped up the use of fiber-optic lines and digital subscriber lines (DSL). But regulation helped foster the Internet, according to the GAO, by barring AT&T and the "Baby Bells" from providing data-processing and information services and thus stifling competition, and by a Federal Communications Commission (FCC) decision not to impose access charges on Internet service providers, keeping costs down.

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